AEG finalizes $700 million naming-rights deal for L.A. stadium

Posted by Mike Florio on February 1, 2011, 7:30 AM EST

In the clearest indication yet that the NFL will return to Los Angeles sooner rather than later, the group hoping to build a football stadium in downtown L.A. will announce Tuesday a naming-rights deal with Farmers Insurance, according to Sam Farmer of the Los Angeles Times.

The 30-year agreement carries a value of $700 million. In the first year, Farmers Insurance will pay $20 million, with the amount growing each year thereafter.

The possibility of a naming-rights arrangement with Farmers Insurance was first reported last month by Peter King of Sports Illustrated.

The stadium, if constructed, will be named “Farmers Field.”

As Farmer (not Farmers) points out, the folks at AEG have turned the typical time line upside down. But the move demonstrates the viability of the project and creates momentum.

Farmer (not Farmers) will appear on Tuesday’s ProFootballTalk Live to discuss the status of the project, the possible demise of the competing project in City of Industry, the team(s) that may play there, and other issues relevant to the return of the N.F.L. to L.A.

When talk of this stadium first started and people on here were saying it would never happen because LA can’t support a team, the traffic downtown would be too bad, blah blah blah, I told you that no one gets rich betting against Philip Anschutz.

When it comes to business deals, he typically gets what he wants.

There will be a new stadium and convention center in downtown LA, so everyone should just get their heads around that.

And for any city dragging their feet on new stadiums, the consequences are getting very real.

I’m a big Vikes fan and have been since my childhood in the 60’s. I live in New York and would love to see the team move to a state that would back them. L.A. Vikings has a nice ring to it. Looking forward to going to one game a year in Cali! My daughter has become a Vikes fan, I tell her “get ready for a life of misery and almosts”. Feel bad that I pushed the kids into being Vikes fans, but maybe their luck will change in a different state. I’m married to the team not the state.

I hate when stories about a possible return of the NFL to Los Angeles come up on PFT. All of you experts come out of the woodwork spewing rehashed b.s. that you once read or heard about Los Angeles.

A lot of people live here and a lot of us want the NFL back. Many of us were also under the age of 14 when the Raiders and Rams left, and really weren’t in any position to spend money to keep out teams here.

Regardless of what you experts think, we want the NFL here, and it will be supported.

I wonder if enough customers will leave Farmer’s to protest that outrageous deal. I would be calling demanding a reduction in rates if I was a customer of theirs. Nearly a billion for friggin naming rights, why not just buy a damn team!

“Only California would beleive they deserve another professional sports franchise.”

Californians don’t believe they deserve anything from professional sports.

However, as a business, it is very hard to argue with 37 million potential customers. As Roski likes to point out, draw a 30 mile circle from the Industry stadium site and in that circle 1 out of every 19 people in the US lives there. That makes LA a very attractive proposition.

“Not to mention all the FAILED franchises.”

The failed franchise argument is interesting. What makes a failed franchise? Is it because they moved?

“I agree that Roski is ahead right now. But that’s kind of like saying a golfer that is in the clubhouse at -5 is “ahead” of Phil Mickleson who is only -4 under but has three par 5′s still left to play.”

Well your analogy is not exactly accurate. It is more like a golfer is in the clubhouse at -5 and Phil is making the turn at -1.

Remember Anschutz still has to convince the city it won’t cost them a thing, get them to agree to tear down the West Hall of the CCenter, get an EIR approved, avoid any lawsuits because of the EIR or get legislative exemption. Long way to go and still plenty of landmines to avoid.

“It’s possible the other guy could win, but who are you betting on?”

It is more like, ‘it is still possible AEG will win’. Right now Roski has the upper hand. If he can convince a team to move to his stadium before AEG can get any of the previously mentioned approvals, his stadium will get built first. Whoever wins is immaterial to me.

This naming rights deal just proves the power of the LA market, which is a win for all of us LA NFL fans.

You make great points, and are obviously better tied into the local area than I.

Taking a more macro view of the situation, I would put Anschutz closer to Roski than you do, for a couple of reasons:

1) Whichever of these stadiums get built, they will be built in vein of the new Cowboys stadium, which features over 300 suites. I think the type of people they will be looking for to fill those suites would be much more attracted to a downtown stadium than one in COI.

2) I feel fairly certain that Roger Goodell would rather have a team downtown. Just seems to fit much better with his overall vision. He could exert enormous pressure on owners not to do a deal with Roski, and let it be known through channels that only a downtown stadium gets a Super Bowl.

Facts as they currently stand may favor Roski, but if I were an investor and both these guys were pitching me right now, my gut would still say to go in with Anschutz.

And yet you still refuse to write stories on the Viking reports of the Arden Hills ammunition plant site, the fact that its been reported that Viking officials have met with Ramsey county officials for more then a year, the fact that Julie Rosen (R) will be authoring a bill to come forward in a week or two, the fact that Governor Dayton wants this bill to be brought forward BEFORE the task of balancing the budget, and the fact that a liquor tax/car rental/ hotel rental and Racino money to be used to fund that stadium would likely pass with a republican house and a democratic governor.

Or the fact that the Vikings have been looking at three downtown minneapolis sites, one in Brooklyn center, and the Arden Hills site, yes, the Vikings could move… to a different site in Minnesota.

Or the fact even Rodger Godell has met with Dayton, toured the metrodome before the TCF Bank game, and has said he wants to keep the tradition of the Vikings in Minnesota and the NFL rivalries in the North. Even Godell has publicly spoken on wanting the Vikings case resolved in Minnesota.

Or the fact LA Stadium luring Liewkie and AEG have Publicly said they have spoken with the Vikings and understand the team wants to stay in Minnesota and has said ‘no thanks’ to LA.

Not to mention all the FAILED franchises.
— — — —
The 3 main sports leagues that are followed in America are (not in particular order) the NFL, MLB, and the NBA… In your list of “FAILED franchises” you just named 2 of those 3 sports reigning champions… If winning is failing, then we love failing out here in Cali.

Why all you Viking haters, I am taking names, why cheer on a state having their team, which sells out all the time, taken from them. Your No viking fan if you want this, even if you did just move to LA.